IMF African Deputy Director confident in Board approval of $360m disbursement after review in June
IMF African Deputy Director, Catherine Pattillo, has expressed confidence in Ghana’s economic recovery and positive trajectory, suggesting that the IMF program review could unlock vital financial support of $360 million by June 2024.
Ms Pattillo’s optimism comes in the wake of Ghana’s commendable progress in navigating the complexities of debt restructuring, a pivotal step towards bolstering its fiscal resilience by reducing its debt stock to secure further installments from the $3bn loan form the Fund.
Speaking in an interview on the PM Express Business edition, Ms Pattillo emphasized the importance of Ghana’s continued efforts in reaching agreements with creditors, underscoring the significance of this milestone in the IMF’s evaluation process.
“Ghana’s process is on a very good path right now, and as you know the Ghana team was in the country recently and reached a staff-level agreement with authorities on the Programme.
“The next step is for Ghana to reach an agreement with their creditors and that will help us to move forward to complete the board meeting on Ghana by the end of June 2024. So far I think that things are moving well”, she said.
Projections outlined in the IMF’s 2024 Regional Economic Outlook hint at a cautiously optimistic outlook for Ghana’s economic growth, mirroring the government’s own forecasts. Despite grappling with persistent challenges such as inflationary pressures and currency volatility, Ghana’s economy has exhibited resilience, surpassing initial IMF projections.
With growth estimates poised to exceed previous expectations, contingent upon steadfast adherence to IMF program guidelines, Ghana appears poised for a potential growth surge, with average growth rates anticipated to reach 5% by next year.
However, amidst the backdrop of burgeoning economic optimism, concerns linger on the horizon. At the IMF’s Global Economic Outlook launch in Washington DC, Director of Research, Pierre-Olivier Gourinchas, highlighted geopolitical tensions in the Middle East as a potential destabilizing force that could reverberate across developing nations like Ghana.
Additionally, fears loom over the impact of election-related spending on Ghana’s economic recovery, signaling the need for prudent fiscal management to navigate potential headwinds.
